ISLAMABAD: The government has initiated an inquiry into the tunnel collapse at the Neelum-Jhelum Hydropower Project (NJHP), a significant issue in the Rs500 billion project. Minister for Planning and Development Ahsan Iqbal announced on Thursday that Prime Minister Shehbaz Sharif had formed an inquiry commission to investigate the collapse and hold those responsible accountable. The commission, led by a retired judge, was established after two committees presented their findings. It will look into the causes of the failure and determine the legal actions necessary.
Iqbal emphasized the gravity of the collapse, calling it an “expensive and glaring mistake.” He noted that the restoration of the 969-megawatt project, which has been out of service since May 2024, remains uncertain, as the Water and Power Development Authority (Wapda) has yet to submit the required PC-I for its revival.
In May 2025, Water Resources Minister Muhammad Moeen informed the National Assembly that the restoration would take at least two more years. Wapda had suggested rebuilding the tunnel at an estimated cost of Rs250-300 billion or repairing it for Rs20 billion. An international panel of experts (IPOE) had been called in to investigate the structural issues with the project’s Head Race Tunnel (HRT), pointing out required repairs and the need for enhanced ventilation, lighting, and worker safety measures.
The inquiry commission, approved in May by the federal cabinet, is led by Justice (retd) Tariq Abbasi, with a deadline of August 20 to finalize its report. The commission will examine every decision made in the planning, design, execution, and monitoring of the project. It will focus on pinpointing accountability for mistakes, delays, and misjudgments that led to the tunnel’s collapse. The commission is tasked with checking if engineering standards, project management protocols, and directives from key regulatory bodies were followed, as well as determining if failures in geological assessments, tunnel lining, or water pressure management were due to negligence, incompetence, or deliberate misconduct.
The commission will also assess the roles of oversight bodies, consultants, and contractors in failing to mitigate risks and fulfill contractual obligations. It will work to establish responsibility for these failures and take appropriate action.
During the press conference, Iqbal also addressed the broader economic situation, noting the government’s achievement in reducing inflation to 4.5%, the lowest since 2016. He attributed this to effective fiscal management, which helped stabilize Pakistan’s economy despite global challenges. The minister expressed confidence that after restoring political and economic stability, foreign investment would start picking up from this fiscal year.
According to the development update report released by the Planning Ministry, Pakistan’s GDP growth in FY2025 reached 2.7%, and inflation dropped significantly. The government has focused on inclusive, export-led growth projects under the Public Sector Development Programme (PSDP), prioritizing exports, digitalization, green growth, energy security, and social equity as part of the “Uraan Pakistan” initiative.
